Question
Recently RBI launches the first pilot project for
central bank digital currency (CBDC), also known as digital rupee or e-rupee, the central bank has identified how many banks to participate in commencing the first pilot?Solution
The Reserve Bank of India (RBI) launches the first pilot project for central bank digital currency (CBDC), also known as digital rupee or e-rupee. The first digital rupee pilot will be in the Wholesale segment and the central bank has identified nine banks to participate in commencing the first pilot. The nine banks are State Bank of India, Bank of Baroda, Union Bank of India, HDFC Bank, ICICI Bank, Kotak Mahindra Bank, Yes Bank, IDFC First Bank, and HSBC. The pilot project will focus on settlement of secondary market transactions for government securities. Central Bank Digital Currency (CBDC) is a digital form of legal tender issued by the RBI. India’s CBDC will be called ‘e₹’, and it can be exchanged one-for-one for fiat currency as it is a digital form of rupee. RBI Headquarters: Mumbai        Governor: Shaktikanta Das 4 Deputy Governors: T. Rabi Sankar, MK Jain, MD Patra, M Rajeshwar Rao The Reserve Bank of India defines Central Bank Digital Currency (CBDC) as a digital form of legal tender issued by a central bank. Simply put, it is a digital form of fiat currency, i.e. The Indian Rupee. As a result, it can be exchanged for fiat currency one for one. CBDC will have all of the advantages that we see with cryptocurrencies and digital forms of payment like it can never be torn, burned, or physically damaged. They are also not physically lost. In comparison to notes, the lifeline of a digital form of currency will thus be indefinite.The Digital Rupee will bring with it another significant advantage in terms of cryptocurrencies which is that it will be governed by a central authority, reducing the volatility risk associated with other digital currencies such as Bitcoin.
Which international organization recently collaborated with the UN Office for South-South Cooperation to promote sustainable development through coopera...
What is the maximum repayment period for public deposits under the new HFC guidelines effective January 2025?
What is the percentage decline in Australia's share of India's total coking coal imports in Q1FY25 compared to the previous fiscal period? Â
Match the following pillars of the Dharti Aaba Janbhagidari Abhiyan (DAJA) with their focus areas:
Consider the following statements regarding Scheduled Banks in India:
1. Scheduled Banks are those included in the Second Schedule of the RBI Act...
With reference to the Jan Vishwas Bill recently passed by Chhattisgarh, consider the following statements:
1. Chhattisgarh is the first state in ...
Which of the following is NOT a method for farmers to register for the PM-KISAN scheme?
How much is the first installment released by India to the United Nations Relief and Works Agency (UNRWA) for Palestine refugees for 2024-25?
The Economic Survey 2023-24 mentions the need for innovative financing mechanisms. Which of the following is a proposed solution to boost clean energy i...
Which state government recently announced a special scheme offering a 50% subsidy on Nano Urea and Nano DAP to promote sustainable agricultural practices?